HomeMy WebLinkAbout2008-09-02 Council Regular Meeting MINUTES
OF THE REGULAR MEETING OF THE
EDINA CITY COUNCIL
HELD AT CITY HALL
SEPTEMBER 2, 2008
7:04 P.M.
ROLLCALL Answering rollcall were Members Bennett, Housh, Swenson and Mayor Hovland.
Absent was Member Masica.
CONSENT AGENDA ITEMS APPROVED Motion made by Member Swenson and
seconded by Member Bennett approving the Council Consent Agenda with the
exceptions of Agenda Item V.B. Resolution No. 2008-80 Entering Into MnDOT Grant
Agreement 93209 Landscape Beautification T.H. 100, and Agenda Item V.I. Data Link
Antenna —T-Mobile Van Valkenburg Water Tank.
Rollcall:
Ayes: Bennett, Housh, Swenson, Hovland
Motion carried.
*MINUTES - REGULAR MEETING OF AUGUST 19, 2008, WORK SESSION OF AUGUST
19 2008 EXECUTIVE SESSION OF AUGUST 22, 2008, AND STUDY SESSION OF
AUGUST 22, 2008, APPROVED Motion made by Member Swenson and seconded by
Member Bennett approving the minutes of the Regular Meeting of August 19, 2008,
Work Session of August 19, 2008, Executive Session of August 22, 2008, and Study
Session of August 22, 2008.
Motion carried on rollcall vote — four ayes.
PUBLIC HEARING — REVISED FINAL DEVELOPMENT PLAN AND APPEAL OF
VARIANCES APPROVED — 7300 BUSH LAKE ROAD, MIKE PALM, RINK PROPERTIES
LLC — CONTINUED FROM AUGUST 4, 2008 Affidavits of Notice presented and ordered
placed on file.
Planner Presentation
Planner Teague presented the request of Rink Properties LLC for approval of the Final
Development Plan to build a permanent structure as a third indoor ice rink at the Minnesota
Made Ice Center at 7300 Bush Lake Road and a variance request to allow spectator seating.
He noted the property was zoned Planned Industrial District (PID) and reviewed that two years
ago, the Council approved a Final Development Plan and variance to build a rigid frame
(temporary) structure. The applicant was now proposing to construct a permanent structure in
that same location with spectator seating. Mr. Teague stated the application was reviewed
and recommended for approval, with conditions, by the Planning Commission. He advised the
Planning Commission's three concerns related to on-site circulation, the need for additional
landscaping, and entrance treatments, and had been resolved by the applicant in a revised
plan. Mr. Teague reported the Zoning Board of Appeals unanimously approved the variance.
He added staff had appealed the Zoning Board's decision to allow the City Council to take
action on the entire project. Mr. Teague stated precedent was established with approval
allowing the first two rinks spectator seating. Mr. Teague advised minimum setbacks would be
met with this project and noted the Transportation Commission found no impacts to adjacent
roadways.
The Council discussion included: the concern of one Planning Commissioner who voted
against the recommendation due to perceived safety issues related to traffic circulation,
secondary entrances, signage, and tightness of the turn of traffic proceeding from the south to
the north; and, safety concern at the back of the building due to its location on a dead-end
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Minutes/Edina City Council/September 2. 2008
road with lower police surveillance. It was noted the plan had been revised to address
circulation concerns by widening the lane somewhat and creating a one-way traffic pattern.
The Council discussed the benefit of incorporating glass into the entry doors so participants
could see if their ride had arrived and see into the parking lot before leaving the building.
Proponent Presentation
Mike Palm, 5034 Bruce Place, Minnesota Made Ice, explained the reasons they revised the
plan to construct a year-round, more aesthetically pleasing structure. To address the Planning
Commissioner's concern, they have revised the plan to include door awnings, even though it
was not a requirement, to improve the aesthetics of the entry points. Mr. Palm answered
questions of the Council. He stated that the back lot was well lit and Minnesota Made Ice was
not planning to include glass in either in entry doors or as sidelights. Mr. Palm reviewed their
youth training program and stated they provide directions to use Bush Lake Road north off 1-
494.
Public Testimony
No one appeared to comment.
Member Housh made a motion, seconded by Member Swenson, to close the public
hearing.
Ayes: Bennett, Housh, Swenson, Hovland
Motion carried.
Member Swenson made a motion, seconded by Member Bennett, adopting Resolution
No. 2008-87 approving the revised Final Development Plan to build a third rink for
Minnesota Made Ice Center including a variance to allow spectator seating, at 7300
Bush Lake Road, based on the following findings:
1) With the exception of the variance for spectator seating, the proposal would meet
the required standards and ordinances for a Final Development Plan.
2) The proposal meets the required standards for a variance because:
a. The proposed use was reasonable, given the existing two rinks on the site
contain spectator seating. The proposed new rink would have a similar
capacity to the first two rinks.
b. There would be adequate parking to support the new rink and seating.
c. Existing roadways would support the project.
3) The proposed building would match the existing structures.
Approval of the Final Development Plan would be subject to the following conditions:
1) The site must be developed and maintained in conformance with the following plans,
unless modified by the conditions below:
• Site plan date stamped August 8, 2008
• Building elevations date stamped July 2, 2008
• Grading plan date stamped August 8, 2008
• Landscape plan date stamped August 11, 2008
2) Submit a copy of the Nine Mile Creek Watershed District Permit. The City may
require revisions to the approved plans to meet the District's requirements.
3) A Class I standpipe hose connection must be installed at the doors on the south end
of the new building, as required by the fire marshal.
4) Per Edina Code Section 850.10. Subd. 3.B, a letter of credit, performance bond or
cash deposit must be submitted in the amount equal to 150% of the proposed
landscaping prior to issuance of a certificate of occupancy for the building.
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Minutes/Edina City Council/September 2, 2008
5) The secondary entrances must be signed and remain open when the parking lots on
the north and west side of the building are in use.
Ayes: Bennett, Housh, Swenson, Hovland
Motion carried.
PUBLIC HEARING — COMMERCIAL PHOTOGRAPHY PERMIT APPROVED — CONTINUED
FROM AUGUST 19, 2008 — 5500 MERRITT CIRCLE Affidavits of Notice presented and
ordered placed on file.
Staff Presentation
Assistant to the City Manager Smith presented the request of Big Minyan Film Company to film
a major motion picture in Edina. As part of the requirements to issue a photography permit, a
public hearing was scheduled and notices sent out to residents within 500 feet of the property
plus Doncaster Way since they were proposing to park in that area. Ms. Smith advised the
applicant had provided proof of insurance and payment for the permit fee.
Proponent Presentation
Tyson Bidner, Location Manager for Coen Brothers, 540 North Fifth Street, Suite 1100, Ford
Center, Minneapolis, 55401, described the plot for the comedy "A Serious Man" and their
request to film the movie for six days in Edina using 5500 Merritt Circle for the movie's interior
shots. Mr. Bidner requested the City allow semi trucks to be parked along Highlands Park. He
explained they were attempting to rent driveways around the film site to park and store
equipment on Doncaster Way. Mr. Bidner explained there would be a tent in Highlands Park
for catered meals and the film crew would work with City staff to locate the catering tent so as
not to interfere with athletic fields. Mr. Bidner explained they would require the crew to park
their personal vehicles at Garden Park and shuttle to and from the filming site. Mr. Bidner
stated a letter describing the proposed film schedule including contact telephone numbers had
been handed out door-to-door within the 500-foot notification zone and beyond. That
information would be updated, as needed, and also provided to Ms. Smith.
The Council discussion included: safety of students walking to school, potential wear on the
streets in this low-lying area, and how damage to streets would be addressed. Mr. Bidner
stated he had contacted the school and talked with Sgt. Tom Draper about having an officer on
location every day to assure traffic control and student safety. In addition, Mr. Bidner agreed
to work with staff regarding the best traffic route for semi trucks. Ms. Smith stated the
applicant had the required insurance and would walk the neighborhood with City
Engineer/Public Works Director Houle to assure any wear and tear on the road was addressed
prior to their leaving the area.
Public Testimony
No one appeared to comment.
Member Housh made a motion, seconded by Member Bennett, to close the public
hearing.
Ayes: Bennett, Housh, Swenson, Hovland
Motion carried.
Member Housh made a motion, seconded by Member Swenson, to approve issuance of
a Commercial Photography Permit to Big Minyan Films LLC.
Ayes: Bennett, Housh, Swenson, Hovland
Motion carried.
PUBLIC COMMENT
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Minutes/Edina City Council/September 2, 2008
No one appeared.
*AWARD OF BID — 2008 MICROSOFT ENTERPRISEIWGREEMENT RENEWED Motion
made by Member Swenson and seconded by Member Bennett approving the renewal for
the fifth year of a six-year agreement with Software House International, State Contract
425551, at $41,789.23.
Motion carried on rollcall vote —four ayes.
*AWARD OF BID — STORM SEWER IMPROVEMENT NO. STS 345 Motion made by
Member Swenson and seconded by Member Bennett awarding storm sewer
improvement, Oak Drive, Improvement No. STS 345 to the recommended low bidder,
Minger Construction, Inc. at $30,309.05.
Motion carried on rollcall vote —four ayes.
AWARD OF BID — 2008 MILL AND OVERLAY CONTRACT ENG 08-14 Mr. Houle explained
that the 2008 Mill and Overlay Contract would mill and overlay the existing pavement on
Parklawn Avenue and West 76 Street from France Avenue to York Avenue. He said this
project had been moved up into 2008 because of the severe deterioration of the roadways.
Mr. Houle explained the condition had been called to staff's attention by a consultant hired to
review the City's roadways. Mr. Houle said that there was adequate funding for the project
since the West 70th Street and Metro Boulevard intersection would be done after the West 70th
Street/Greater Cornelia Study has been completed and the two projects would be exchanged
in order of completion. Mr. Houle said that there would be monies in the Municipal State Aid
account to cover the project costs due to the re-scheduling of the projects. He recommended
the contract be awarded to the low bidder Bituminous Roadways, Inc. Responding to Council
questions about the cause of the deterioration, Mr. Houle explained a group of civil engineers
was investigating the problem which had occurred in several communities and hoped to
discover possible causes and remedies. Mr. Houle stated from a safety point of view, this road
needed to be repaired. Member Swenson made a motion, and seconded by Member
Housh, to award the 2008 Mill and Overlay, Contract No. ENG 08-14, Improvement Nos.
BA-348 and BA-349, to Bituminous Roadways, Inc. at $311,638.15.
Ayes: Bennett, Housh, Swenson, Hovland
Motion carried.
PURCHASE AGREEMENT AUTHORIZED FOR 7450 METRO BOULEVARD AND
RESOLUTION NO. 2008-83 ADOPTED CALLING FOR SALE OF $14,000,000 CAPITAL
IMPROVEMENT BONDS City Manager Hughes explained staff had negotiated a purchase
agreement with ConAgra for the acquisition of 7450 Metro Boulevard for $8 million. He
suggested they also consider calling for the sale of$14 million G.O. CIP Bonds in tandem with
the purchase agreement. Mr. Hughes said Edina had until October 23, 2008, for the due
diligence period to review studies and conduct testing relative to the 7450 Metro Boulevard
site. He added the purchase agreement spelled out responsibility for closing costs, real estate
taxes, and other issues with respect to the property and tracked closely with the term sheet
previously reviewed by the Council.
The Council expressed concern with language indicating the seller would not warrant or
represent the information was true, accurate, or complete. City Attorney Poehler explained
ConAgra's studies were acquired for the intended use of the building, not a future use by
Edina. Mr. Hughes advised that the City's Environmental Engineer was now reviewing the
Phase I Environmental Report, Phase II Investigation Report, and the supplemental Phase II
Report, prepared by Barr Engineering for ConAgra, to assure they would have come to the
same conclusion as reached by Barr Engineering.
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Minutes/Edina City Council/September 2, 2008
The Council raised questions related to the proposed bond sale and payment of earnest
money. Mr. Hughes explained the call for bonds ran concurrently with the due diligence period
and, if needed, provided Edina with the opportunity to extend that bond opening date should
the due diligence work not be completed. Ms. Poehler explained the circumstances under
which the $100,000 earnest money would be returned, such as if the City does not sell the
bonds or decides to not move forward during the due diligence period. Staff explained that the
purchase agreement reference to $25,000 in damages related to reimbursement of Edina's
expenses should the seller fail to close on the property.
The Council discussed the agreement language indicating the purchaser takes the property in
"as-is" condition with no warranty, questioned whether the agreement was broad enough to
address equipment that may be on the property at closing, and asked about anticipated
operating costs. Jack Rice, 4801 Hilltop Lane, explained that Edina would rely on the studies
provided and testing conducted to satisfy itself as to the condition of the property during the
due diligence period. Staff indicated their belief the purchase agreement language was
sufficient and they anticipated significant demolition would be necessary so preserving fixtures
was not a concern. Mr. Hughes referenced the memorandum from Mr. Houle explaining why
operating costs of the new facility, which were based on square footages of comparable
buildings, would approximate the costs of the current facility. Mr. Houle stated they were also
looking at adding skylights to the roof in the garage, administration, and lunch areas, which
would most likely result in electrical savings.
Mark Ruff, Ehlers & Associates, presented information related to the proposed $14 million
General Obligation Capital Improvement Plan (CIP) Bonds, Series 2008C, pursuant to a CIP
plan authorized by the Council less than a year ago. Mr. Ruff recommended a lease revenue
bond issue be considered to cover the costs once they were known, that would excess the
$14,000,000 Capital Improvement Bond. He said the interest rates were anticipated in the mid-
4.5% range so it was a good time for Edina to sell bonds. Mr. Ruff explained the IRS provision
called "bank qualification", and stated that given the size and needs of Edina, such bonds were
not feasible for this issue.
Mayor Hovland thanked Mr. Rice and City staff for their work on this issue on behalf of Edina.
Member Housh made a motion, seconded by Member Swenson, to authorize the
execution of a purchase agreement for 7450 Metro Boulevard. Council Members noted
that while this was a difficult decision because of cost concerns, it was the correct decision to
assure the safety and well being of the City's employees. With the new facility, it was hoped
that operational efficiencies could be improved and increased.
Ayes: Bennett, Housh, Swenson, Hovland
Motion carried.
Member Housh introduced Resolution No. 2008-83 Calling for the Sale of $14,000,000
G.O. Capital Improvement Bonds, Series 2008C. Member Swenson seconded the
motion.
Rollcall:
Ayes: Bennett, Housh, Swenson, Hovland
Motion carried.
Mr. Hughes introduced Jim Doyle, ConAgra Vice President of Real Estate. The Council
extended their appreciation to Mr. Doyle.
RESOLUTION NO. 2008-80 APPROVED ENTERING INTO MNDOT GRANT AGREEMENT
93209 LAN DSCAP EAUTIFICATION T.H. 100 Mr. Hughes responded to Council's
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concern stating staff would assure the City received a one-year growing season guarantee.
He added the City had acquired a portable watering tank or "water buffalo" that would be
parked at the site allowing the neighbors to water the new plantings. Mayor Hovland thanked
Park Board Member Joseph Hulbert who had recruited residents' assistance and invited
residents to participate in the landscape planting on September 13, 2008 starting at 9 a.m.
Member Bennett introduced Resolution No. 2008-80 Accepting Grant for Roadside
Landscaping Landscape Partnership Program at Trunk Highway 100 and 77th Street,
Agreement 93209. Member Swenson seconded the motion.
Rollcall:
Ayes: Bennett, Housh, Swenson, Hovland
Motion carried.
*RESOLUTION NO. 2008-82 APPROVED CALLING SPECIAL ASSESSMENT HEARINGS
(OCTOBER 7, 2008 AND OCTOBER 21, 2008) Motion made by Member Swenson and
seconded by Member Bennett to adopt Resolution No. 2008-83 calling special
assessment hearings on October 7, 2008, and October 21, 2008.
Motion carried on rollcall vote —four ayes.
RESOLUTION NO. 2008-81 APPROVED ACCEPTING VARIOUS DONATIONS Mayor
Hovland explained that in order to comply with State Statutes; all donations to the City must be
adopted by Resolution and approved by four favorable votes of the Council accepting the
donations. Member Swenson introduced Resolution No. 2008-81 accepting various
donations. Member Housh seconded the motion.
Rollcall:
Ayes: Bennett, Housh, Swenson, Hovland
Motion carried.
RESOLUTION NO. 2008-86 APPROVED REPEAL OF SPECIAL LAWS — EDINA
FIREFIGHTER'S RELIEF ASSOCIATION Mr. Hughes advised the 2008 Legislature adopted a
law that repealed the special laws enacted for different fire departments and relief
associations. City Attorney Knutson had reviewed the legislation and deemed this action a
housekeeping matter. Member Bennett introduced Resolution No. 2008-86 Repeal of
Special Laws — Edina Firefighter's Relief Association. Member Housh seconded the
motion.
Rollcall:
Ayes: Bennett, Housh, Swenson, Hovland
Motion carried.
*HEARING DATE SET (SEPTEMBER 16, 2008) — APPEAL OF DANGEROUS DOG
DESIGNATION, 6621 GALWAY DRIVE Motion made by Member Swenson and seconded
by Member Bennett setting public hearing date of September 16, 2008, for appeal of
dangerous dog designation, 6621 Galway Drive.
Ayes: Bennett, Housh, Swenson, Hovland
Motion carried.
RESOLUTION NO. 2008-85 APPROVED WESTIN FINAL PLAT Planner Teague presented
the request of Westin Hotel and Condominiums for final plat approval to create individual lots,
noting the preliminary plat was approved at the last Council meeting. Mr. Teague advised
there had been no changes and Hennepin County found the final plat to be acceptable so staff
recommended approval. Member Housh introduced Resolution No. 2008-85 approving
the Final Plat of Westin Hotel and Condominiums at 3501 Galeria. Member Swenson
seconded the motion.
Rollcall:
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Ayes: Bennett, Housh, Swenson, Hovland Minutes/Edina City Council/September 2, 2008
Motion carried.
SOUND WALL FEASIBILITY REPORT Mr. Houle reviewed the location under consideration
and advised that the Mn/DOT Office of Environmental Services Department had indicated that
treated wood glue laminated sound walls were no longer allowed to be constructed over or
adjacent to aquatic environments. He said Mn/DOT would require a Plexiglas sound wall, with
an estimated cost of $2.75 million. Mr. Houle presented the estimated assessment costs to
properties and advised that the project was not economically feasible. Mr. Houle
recommended staff be directed to send residents a letter advising them of this situation and
that the Council not call for a public hearing.
The Council discussion included the option of using an earthen berm or plantings and possible
grant opportunities. Mr. Houle advised that a berm and plantings could not be placed within
the flood plain and indicated the location where plantings could occur. He stated staff would
communicate with the Nine Mile Watershed District about revegetation. Member Swenson
made a motion, seconded by Member Housh, to not order a public hearing for a sound
wall on Highway 169 between Londonderry Road and Lincoln Drive (east side)
Improvement No. SA-19.
Ayes: Bennett, Housh, Swenson, Hovland
Motion carried.
T-MOBILE DATA LINK ANTENNA INSTALLATION APPROVED —VAN VALKENBURG
WATER TANK In response to Council's questions, Assistant City Manager Worthington
advised there was no lighting associated with this 12-inch round antenna installation since it
would be installed on the water tank itself, it was separated from residential areas by a private
roadway, and there was a lot of landscaping so it was not visible from abutting residential
properties. She also advised that since this was a restricted area, all cellular tenants on that
water tank abide by the requirement to have a City employee present to gain access. Member
Bennett made a motion, seconded by Member Swenson, to approve the lease with
Telecom Transport Management, Inc. for a data link antenna and associated ground
equipment on and around the Van Valkenburg Water Tank.
Ayes: Bennett, Housh, Swenson, Hovland
Motion carried.
*CONFIRMATION OF CLAIMS PAID Motion made by Member Swenson and seconded by
Member Bennett approving payment of the following claims as shown in detail on the
Check Register dated August 21, 2008, and consisting of 36 pages; General Fund
$227,991.06; CDBG Fund $81,872.00; Communications Fund $2,891.98; Working Capital
Fund $70,453.61; Art Center Fund $15,651.61; Golf Dome Fund $667.65; Aquatic Center
Fund $22,783.67; Golf Course Fund $34,133.30; Ice Arena Fund $16,519.46;
Edinborough/Centennial Lakes Fund $22,630.54; Liquor Fund $129,737.30; Utility Fund
$136,467.79; Storm Sewer Fund $10,321.47; PSTF Agency Fund $524.25; TOTAL
$772,609.69 and for approval of payment of claims dated August 28, 2008, and
consisting of 36 pages: General Fund $372,497.31; Communications Fund $4,780.43;
Working Capital Fund $1,259,501.72; Construction Fund $76,780.85; Art Center Fund
$20,872.07; Aquatic Center Fund $3,415.59; Golf Course Fund $33,929.50; Ice Arena
Fund $249.84; Edinborough/Centennial Lakes Fund $26,802.93; Liquor Fund
$189,124.23; Utility Fund $1,028,167.44; Storm Sewer $113,569.63; TOTAL $3,129,691.54.
Motion carried on rollcall vote — four ayes.
RESOLUTION NO. 2008-84 APPROVED SETTING THE 2009 PRELIMINARY BUDGET
AND PROPOSED TAX LEVY Mr. Hughes presented the preliminary tax levy, noting it would
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be the maximum levy allowed and the basis for the Truth in Taxation notices. He stated the
main increase in 2009 would be year one of the debt service levy for the Public Works facility
and added debt service of $84,191 for equipment certificates spread over three years to fund
equipment acquisition needs. Mr. Hughes noted the levy increase was 6.8%, comprised of a
4.4% increase in the general fund levy and a 2.4% increase in the debt service levy. Mr.
Hughes advised that a 4.4% increase was the maximum increase allowed in the general fund
levy under levy limit laws enacted by the 2008 Legislature. Other components of the levy
relate to older debt and previously incurred debt. Mr. Hughes stated the Council would next be
provided with a detailed budget for their consideration. Member Bennett introduced
Resolution No. 2008-84 setting the setting the maximum proposed 2009 tax levies.
Member Swenson seconded the motion.
Rollcall:
Ayes: Bennett, Housh, Swenson, Hovland
Motion carried.
TRUTH IN TAXATION HEARING DATE SET Following discussion, Member Swenson made
a motion, seconded by Member Bennett, to set Monday, December 1, 2008, at 5:00 p.m.
for the Truth in Taxation initial hearing; Monday, December 8, 2008, at 5:00 p.m. for the
continuation hearing; and Tuesday, December 16, 2008, at 7:00 p.m. for the budget
adoption hearing.
Ayes: Bennett, Housh, Swenson, Hovland
Motion carried.
CORRESPONDENCE AND PETITIONS
Mr. Hughes advised of the Edina Federated Women's Fed Fest event in January of 2009 and
their desire to include a raffle. Following discussion, the Council directed staff to draft a Code
revision, for Council consideration, to more narrowly define the type of charitable organization
that could hold raffles at locations other than within an R-1 District.
There being no further business on the Council Agenda, Mayor Hovland declared the meeting
adjourned at 9:07 p.m.
Respectfully submitted,
Debra A. Mangen, City Cler
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